Cloud technology is not new. The Internet has been around for a few decades now. Virtualization, hardware commoditization, standardization and open source software—these are familiar concepts. The cloud amalgamates, integrates a range of these existing technologies and makes them work together to create a “seemingly new” dimension to enterprise computing.

At the core of the so called new technology integration, amalgamation, convergence is the concept of “Utility computing”. No consumer owns the hardware or the software. Hardware and software resources are shared. The cloud backup service provider owns the infrastructure and allows consumers to use the resources as a service for a price. Service Level agreements dictate the level of service a consumer can expect and service providers strive to make a mark in the market by tirelessly and constantly improving the quality of their service delivery in order to attract customers.

This movement towards “utility computing” has been compared several times over with the movement towards making electricity a utility product in the later part of the eighteenth century and the early part of the twentieth century. Industries that set up huge hydroelectric projects for generation of electricity during the Industrial revolution, discarded their infrastructure in favor of cheaper sources of electricity that required no maintenance activities on their part. As a result, IT users suddenly find that they can reconsider IT investment decisions and invest in the revenue model of computing that is being offered by cloud backup or other cloud based service providers. Customers have the ability to scale up their infrastructure on demand and pay only for the resources they actually use up. They can reduce expenses on purchase of IT equipment and in the hiring of IT experts for the development and maintenance of their IT infrastructure or the development of commonly used business applications.

Cloud backup and cloud computing services continue to drive the globalization of business. It has ushered in the Knowledge revolution which is the next step in the progress of mankind towards the realization of their full potential. Cloud computing advocates point out that the cloud applications, such as cloud backup or business applications are maturing and yielding significant results to businesses, who have taken the bold step forward in integrating their business into the knowledge revolution. Real time access to information, informed work flows and programmable user interfaces are gaining ground rapidly. Mobile workers and remote branches are being connected, integrated, and intricately meshed together with the instant availability of enterprise information over the Internet.